This morning, there was an interesting note out from the analysts at UBS, which speculated that Apple would delay launching the high-end iPhone 8 because the company is working on game changer' technology. The firm's analysts stated that they think the company is working on facial recognition technology in its OLED model (the rumored $1,000/unit iPhone8), which could replace Touch ID.
"We believe combing combining 3-D sensing and the location, as well as payment information, could bring up more personalized services and this could be one step towards potential augmented reality (AR) applications," the analysts said in their report.
Furthermore, the analysts assert that as a result of the complicated 3-D algorithms, the assembly of the OLED iPhone8 will not ramp up until October in a planned move by Apple.
If that is indeed the case, I think the pent-up demand for the top of the line model could turn out to be a masterstroke for the company.
Introduce the lower-end iPhone 8's in the late September-early October time frame and then let the demand build up for the flag-ship model.
Also this morning, a note from KGI Securities analyst Ming-Chi Kuo speculated that the iPhone 8 may have limited supplies through the end of the year. Kuo also stated that Apple would ramp production in the October-November time-frame, due to the incorporation of new technologies like edge-to-edge OLED display in the iPhone 8. As a result, Apple could experience shortages in its new iPhone 8 shipments due to production difficulties.
Finally, according to DigiTimes last week, Apple is getting ready to produce 100 million iPhones for year end 2017, with its suppliers making plans to stock chips for the new iPhone 8 beginning in a couple of months or so.
Net-net looks like Apple is anticipating greater than normal demand for the new iPhone 8/iPhone X, and the planned delay in launching (if true) the high-end model could send that demand sky-rocketing even higher than normal. Remember the Apple Airpods and how the mysterious delay in availability led to blockbuster demand for the product?
More importantly, with all the incessant talk about delays for the new iPhone already more than likely baked in by now, a major thesis for the kindly uncles and the boo-birds might just have flown away.
Words to the wise.
(Long aapl, long and short options on aapl)